Hospitality giant, Rainbow Tourism Group (RTG) managed to double hotel occupancy during the nine months to September resulting in the group returning to profitability after enduring a tough two years since the start of the COVID-19 pandemic.
The group achieved a profit before tax for the period of ZW$ 2.08 billion recovering from a loss position of ZW$ 674.2 million.
The current year has seen business returning to normal as lockdown restrictions on travel were relaxed.
In its Q3 trading update, revenue for the group grew to ZW$ 21.4 billion (inflation-adjusted) in the first nine months of the year from ZW$ 5.2 billion same period last year. Hotel room occupancy doubled to 51 percent from 24 percent prior year thanks to the return of both local and international travelers as restrictions were relaxed.
“City hotels continue to contribute the highest revenues. Increased economic activities have seen city hotels occupancies improve to the pre-pandemic levels,” said the group.
It also said resort hotels which have largely been buoyed by local business over the past two years have begun to attract foreign business.
“The Group continues to reap the rewards of its international marketing activities as evidenced by the increasing bookings from international tour operations.”
Conferencing has remained a major revenue driver during the period and it is anticipated that the same trend will continue to year end.
The group’s technology subsidiary- Gateway Stream has been managed to grow significantly due to its diversity in product offerings. However, the grocery channel remained the main revenue driver.
Heritage Expeditions Africa mirrored that of the hotel business over the past seven months.
“As international tourism is increasing, the HExA brand has positioned itself to cater for tourist activities across Zimbabwe,” said the group.
The group expects to finish the year strong as it enters Q4 which is traditionally peak season for visitors.
